Question

At a sales volume of 40,000 units, Carne Company's sales commissions (a cost that is variable with respect to sales volume) total $492,000. To the nearest whole dollar, what should be the total sales commissions at a sales volume of 39,100 units? (Assume that this sales volume is within the relevant range.) (Do not round intermediate calculations.) a. $503.325 b. $492450 c. $480,930 d. $492.000

Answer 1

Answer:

c. $480,930

Explanation:

In this method we applied the unitary method

Given that

Sales volume = 40,000 units

Sales = $492,000

Sales volume = 39,100 units

Sales = ?

So, by considering the given information, the sales for 39,100 units would be

= Sales × updated sales units ÷ last sales units

= $492,000 × 39,100 units ÷ 40,000 units

= $480,930